Case of Strategic Management

   

Added on  2020-02-24

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Running Head: OPERATION MANAGEMENT 1Operation ManagementName of the studentName of the institution
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OPERATION MANAGEMENT ESSAY2IntroductionFounded in 1937 by Kiichiro Toyoda, Toyota remains one of the leading JapaneseMultinational automotive manufacturer companies in automobile sector located in Toyota, Aichi,Japan. Today, the company produces automobiles under five brands that include Toyota, Ranz,Lexus, Hino, and Daihatsu. Not only that, the company also holds 5.9% stake inIsuzu, and16.66% stake inSubaru Corporation. In addition, it also has a joint-venture with two companiesin China that includes Sichuan FAW Toyota Motor and GAC Toyota (Iyer, Seshadri, & Vasher,2009, pp, 57). In India, it has one joint-venture in India, Toyota Kirloskar and one joint venturein the Czech Republic, TPCA. As per experts, TMC is considered as an integral part of ToyotaGroup widely-known as one of the largest conglomerates throughout the globe. Currently, thecompany is considered as one of the largest automobile manufacturers and markets itsautomobiles on every continent. The strategic operation management remains one of the integralparts of the company with its Toyota way philosophy (Chase, Jacobs, Aquilano, 2007, pp.42). About Strategic operation management and key objectives Described as an area of management that is mainly concerned with designing as well ascontrol of the process of production and redesign of the business operations in the productionprocess of the products and services of an organization, the main focus of operation managementis to ensure that the business operation of any organization such as Toyota remains efficient interms of the optimization of the resources and meeting the requirements of the customers as faras possible (Krajewski, Ritzman, & Malhorta, 2013, pp, 54). Not only that, the main objective ofthe operation management is concerned with an efficient management of the entire productionsystem as a process that converts the required inputs such as energy, labor and raw materials intodesired outputs includes products and services for the benefit of the customers (Poluha, 2016,
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OPERATION MANAGEMENT ESSAY3pp.64). The operation management covers almost every sector of the economy such as healthcare sector, banking systems, and includes suppliers, the use of technology and the customersand is involved in producing products, managing customer services, and quality of both (Cachon,& Terwiesch, 2009, pp. 53). One of the major functions in any organization such as Toyota, itcan be considered as par with other departments such as human resources, finance, marketingand supply chain managements. For efficiency purposes, the operation function requires themanagement related to both day-to-day production of products and services as well as strategicmanagement (Cachon, & Terwiesch, 2009, pp. 53). In this case, the strategic management can be described as the formulation as well as theimplementation of major goals as well as the initiatives that have been taken by the topmanagement of the owners based on its assessment of internal and external environments and theconsideration of the resources (Cachon, & Terwiesch, 2009). This management offers an overalldirection to organizations and includes its objectives, the development of policies and plans thatare specifically designed for the achievement of these objectives and then, allocate therequirement of the resources for implementation of the plans. The main focus of strategicmanagement is to assist an organization and increase its performance through efficiency,flexibility, and improvement in the effectiveness of various processes (Cachon, & Terwiesch,2009). The main focus of strategic operation management is to satisfy the requirement of itscustomers for dependable and fast services at reasonable prices and assist its own suppliers inorder to improve the service they offer to the company. This is achieved mainly by fulfilling itsfive key and basic performances and is applied in all types of operation (Cachon, & Terwiesch,2009).
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OPERATION MANAGEMENT ESSAY4It is a fact that for achieving its strategic operation management strategies, a companyfirst needs to define its corporate strategy and then, define its operational performance objectives(Ferrari, and Goethals, 2010). After that, the company needs to define various measures todetermine if these operational objectives are being met. The next step is to configure itsoperating environment for accomplishing one key performance objective or all five keyperformance objectives and they are quality, costs, speed, flexibility, and dependability (Ferrari,and Goethals, 2010). About 5 key performance objectivesThe first key performance objective in the strategic operation management is known asthe quality performance objective (Montgomery, 2012, pp.65). As per the experts, quality instrategic operation management is considered more than compliance to a particular specificationand includes how well a product performs its intended function and includes reliability,durability, and innovativeness of its products. In addition, it also refers to easy access to serviceof the product as well as to the degree to which a product meets their requirement (Montgomery,2012, pp.65). The next key performance objective in this type of management includes speedperformance objectives and it refers to the rate with which an organization can generate productsand services (Ferrari, and Goethals, 2010). Not only that, it also includes the rate at which anorganization can deliver its products and services to the customers and how often this rate ismaintained. The speed also refers to various concepts such manufacturing time of one unit ofproduct or services as well as the time-period required by an organization to research anddevelopment a new product or service (Ferrari, and Goethals, 2010).
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